Red Crescent Resources Limited
TSX : RCB
FRANKFURT : 7RC

Red Crescent Resources Limited

January 30, 2012 15:02 ET

RCR Announces Closing of Private Placement and Operational Update

TORONTO, ONTARIO--(Marketwire - Jan. 30, 2012) - Red Crescent Resources Limited (TSX:RCB)(FRANKFURT:7RC), a base metals focused mineral exploration and mine development company with operations in Turkey, announced today that it has completed the sale of 1,119,380 units for aggregate gross proceeds of CDN $279,845 under the private placement described below.

"Although we anticipated receiving subscriptions for around C$2m, our financing activities took place under difficult market conditions and has been adversely affected from an unusual pattern of selling of our stock immediately prior to closing," said Mr. Alan Clegg, Chairman and CEO of Red Crescent Resources. "The Company is taking appropriate steps to investigate the unusual trading activity which has caused investors to withdraw from the private placement."

Mr. Clegg went on to add that, "The Company continues to pursue other financial facilities to allow us to carry on our operational development strategy of having our Hakkari Zinc and Manganese projects fully functional and cash-flow generating as soon as possible. These operations will start after the winter season when logistical access opens, and be ramped up to grow our cash-flow generating activities from sales of DSO Zinc & Manganese to the level of self-funding as fast as possible. With expected ongoing high cost of equity, RCR is focussed on seeking alternative development funding arrangements and selective corporate activity to accelerate the unlocking of value in its extraordinary assets."

As announced on December 8, 2011, each unit was priced at $0.25, and was comprised of one common share and one common share purchase warrant. Each warrant entitles the holder to acquire an additional common share at a price of $0.40 per share (subject to adjustment) for a period of 24 months from date of issuance. The Warrants are subject to adjustment provisions which are described in the press release of the Company dated December 8, 2011.

The Company paid on closing of the private placement to certain eligible persons an aggregate cash finder's fee of $1,350 and issued a total of 5,400 finder's warrants. The finder's warrants carry the same terms, including adjustment provisions, as the warrants comprising the Units.

The Company plans to use the net proceeds of the Private Placement for general working capital purposes. The Common Shares and Warrants issued under the Private Placement are subject to a four month hold period in Canada.

The Company has also stated that a series of technical announcements on physical results from the 2011 exploration program and the extension plans for the 2012 exploration season at its Hakkari projects, as well as announcements of the details of the now complete full business strategy for RCR in Turkey, can also be expected in the near future.

The statements made in this press release may contain forward-looking statements that may involve a number of risks and uncertainties. Actual events or results could differ materially from the Company's expectations and projections.

About Red Crescent Resources

Red Crescent Resources (TSX:RCB)(FRANKFURT:7RC) is a Turkey-based junior mining company targeting historically inaccessible areas where no modern application of exploration techniques or technology has been applied, with high potential for discovery of significant base metal deposits. For more information, please visit: www.redcrescentresources.com.

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